Business
Simplicity Esports and Gaming Company Signs Binding Letter of Intent with Redragon to Sell 7.5% of Its Brazilian Subsidiary at More Than a $6,900,000 Valuation
Simplicity Esports and Gaming Company Signs Binding Letter of Intent with Redragon to Sell 7.5% of Its Brazilian Subsidiary at More Than a $6,900,000 Valuation.
About this update from Simplicity Esports And Gaming Company
[{"type":"text","content":"\n Boca Raton, Florida, Sept. 01, 2020 (GLOBE NEWSWIRE) -- Simplicity Esports and Gaming Company (OTCQB:WINR) (“Simplicity Esports”), announced today that it has signed a binding letter of intent (“LOI”) with its existing sponsor, Redragon, to acquire a 7.5% equity stake in its Brazilian subsidiary, Simplicity One Brasil. If the transaction closes, we expect Redragon to pay over $390,000 USD in cash, and over $133,000 USD in additional consideration in the form of a Redragon sponsored training center, analytics, and a tournament platform for Simplicity Esports, managed by Redragon. Fred Tannure, Director of Flamengo Esports, stated, “We are thrilled to announce the equity investment and long-term partnership opportunity with our amazing sponsor, Redragon. Red Dragon has been the exclusive provider of peripherals for Flamengo Esports this season, and their desire to become an equity owner in the Brazilian subsidiary of Simplicity Esports provides validation to the long-term value creation of this division.” Jed Kaplan, CEO of Simplicity Esports and Gaming Company, added, “Redragon agrees that we have an incredible opportunity to grow our Flamengo Esports brand into a top esports organization in Latin America. It’s great to have a partner that is willing to provide additional contributions in the form of infrastructure with a sponsored training center to support our League of Legends team, and promotion and marketing opportunities to keep Flamengo Esports a truly sustainable brand in esports for decades to come.” The cash consideration is calculated in U.S. dollars with yesterday’s exchange rate of 5.38 USD/BRL. Closing of the transaction is dependent on completion of due diligence and negotiation and entry into definitive agreements, among other things, including Simplicity Esports being awarded a League of Legends franchise in Brazil by Riot Games, which management expects to be announced by Riot Games in October. About Simplicity Esports and Gaming Company: Simplicity Esports and Gaming Company (WINR) is an established brand within the esports industry, competing and streaming in popular games across different genres, including Free Fire®, PUBG Mobile®, Overwatch®, League of Legends®, and various EA Sports® titles. Simplicity Esports also organ...